Resolution - #03-06-138 - 06/10/2003

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14. Delivery; Application of Proceeds. The Bondg when go prepared and executed shall be delivered by the Administrator to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Tax Increment Crossover Refunding Bonds, Series 2003 Fund" (the "Fund") to be administered and maintained by the Administrator as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Escrow Account" and "Debt Service Account", respectively. (a) Escrow Account. The Escrow Account shall be maintained as an escrow account with U.S. Bank National Association (the "Escrow Agent"), in St. Paul, Minnesota, which is a suitable financial institution within or without the State whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000. All proceeds of the sale of the Bonds shall be received by the Escrow Agent and applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account shall be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as shall be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, (i) to pay when due the interest to accrue on each Bond herein authorized to and including February 1, 2005; and (ii) to pay when called for redemption on February 1, 2005, the principal amount of each of the Prior Bonds. From the Escrow Account there shall be paid (1) all interest on the Bonds herein authorized to and including February 1, 2005, and (2) the principal of the Prior Bonds due by reason of their call for redemption on February 1, 2005. The Escrow Account shall be irrevocably appropriated to the payment of the principal of and interest on the Bonds herein authorized until the proceeds of the Bonds are applied to payment of the Prior Bonds. The moneys in the Escrow Account shall be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account rnay be remitted to the City, all in accordance with an agreement (the "Escrow Agreenmnt") by and between the City and Escrow Agent, a form of which agreement is on file in the office of the Administrator. Any moneys remitted to the City upon termination of the Escrow Agreement shall be deposited in the Debt Service Account. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there shall be credited: (1) after the crossover date, all uncollected tax increments pledged to the payment of the Prior Bonds; (2) any collections of all taxes which may hereafter be levied for the payment of the Bonds and interest thereon provided the tax increments pledged are insufficient for the payment thereof; (3) any balance remitted to the City upon the termination of the Escrow Agreement; (4) any balance remaining on February 2, 2005, in the General Obligation Tax Increment Bonds, Series 1995A Fund created by the Prior Resolution; (6) all investment earnings on funds in the Debt Service Account; and (7) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The amount of any surplus remaining in the Debt Service 13